Chinese domestic billet prices rose sharply to a 3 years high on strong steel futures. Prices at such levels were last seen in Sept’13.
Prices for 150*150 mm Billet Q235 are assessed at RMB 3150-3200/MT (USD 456) including VAT of 17%, which were at USD 414/MT last week.
Market participants credit this price hike to production cut by some big Chinese mills which has created supply shortage in the market.
Production has been cut on government orders to curb pollution levels.
“Prices have gone up too fast in last few days. Two major reasons are, production cut by Chinese mills and increase in demand from housing sector. However sustainability looks a major concern.” said a steel trader based in Beijing, China.
No Firm Export Offers for Chinese Billet
There are no firm export offers for Chinese billet as domestic demand remains strong. Last week offers for Q235 were assessed at around USD 415/MT FOB China main port. However no deals were reported at these levels.
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